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Category > Accounting Posted 26 Jul 2017 My Price 4.00

Yerbury Company

In December 2007, Yerbury Company’s manager estimated next year’s total direct labor cost assuming 50 persons working an average of 2,000 hours each at an average wage rate of $25 per hour. The manager also estimated the following manufacturing overhead costs for year 2008:

Total estimated overhead costs$ 1,500,000

At the end of 2008, records show the company incurred $1,520,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $604,000; Job 202, $563,000; Job 203, $298,000; Job 204, $716,000; and Job 205, $314,000. In addition, Job 206 is in process at the end of 2008 and had been charged $17,000 for direct labor. No jobs were in process at the end of 2007. The company’s predetermined overhead rate is based on direct labor cost.

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Status NEW Posted 26 Jul 2017 10:07 AM My Price 4.00

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